ConocoPhillips (COP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 14,780,000 | 17,351,000 | 29,283,000 | 13,838,000 | -2,082,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,414,000 | 49,279,000 | 48,003,000 | 45,406,000 | 29,849,000 |
| Return on total capital | 1,045.26% | 35.21% | 61.00% | 30.48% | -6.98% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $14,780,000K ÷ ($—K + $1,414,000K)
= 1,045.26%
ConocoPhillips' return on total capital has experienced significant fluctuations over the past five years. The ratio was negative at -6.98% as of December 31, 2020, indicating that the company's capital deployment was not generating satisfactory returns at that time. However, there was a substantial turnaround in the following years, with the return on total capital reaching 30.48% as of December 31, 2021, and further increasing to 61.00% by the end of 2022. This suggests that ConocoPhillips was able to enhance its efficiency in utilizing capital to generate profits during this period.
In 2023, the return on total capital slightly decreased to 35.21%, indicating a potential moderation in the company's capital efficiency compared to the previous year. The most notable development occurred in 2024, where the return on total capital surged to an exceptionally high level of 1,045.26%. Such an extraordinary figure could be attributed to various factors, such as significant asset sales, extraordinary gains, or adjustments that boosted the overall return on capital.
Overall, the trend in ConocoPhillips' return on total capital demonstrates a mix of challenges and successes in capital utilization over the five-year period. It is essential for stakeholders and investors to consider the underlying reasons behind these fluctuations to assess the company's overall financial performance accurately and make informed decisions.
Peer comparison
Dec 31, 2024